Growth of Digital Coupons Outpaces FSI Distribution by Tenfold

MOUNTAIN VIEW, CA—July 26, 2010—In light of recent research indicating coupons distributed via FSI (free standing inserts) rose 8.4 percent for the 12-month period ending June 30, 2010 compared to the year before, today issued new data that shows digital coupons grew 100 percent during the same period. The data shows that more than $1 billion in digital coupon savings was printed or loaded to a store loyalty card via and the network in the last 12 months, outpacing the growth of coupons distributed in newspapers 10 to 1.

“Consumers continue to crave savings, and more and more of them are tapping digital coupons as an important part of their savings strategy,” said Steven Boal, CEO of Incorporated. “We expect more brands and more consumers to increasingly adopt digital coupons, and we foresee substantial growth across the entire digital domain—with particular growth within social media and mobile environments.”

Printed Savings Exceeds $1 Billion

Printed savings from and the digital network for the 12 months ending June 2010 exceeded $1 billion. This includes savings printed or loaded to a store loyalty card and represents a 100 percent increase compared to $529 million the year before. In addition, printed savings in the month of June 2010 exceeded $110 million, the highest ever recorded by the company in a single month. Growth is attributed to several key factors, including continued consumer adoption of online printable, save to store loyalty card and mobile coupons and increased use of digital coupons by brand marketers, including manufacturers and retailers alike.

Increased Brand and Consumer Adoption of Digital Coupons

According to research from NCH Marketing Services, the Internet was the fastest growing distribution vehicle for coupons during the first half of 2010,2 indicating increased adoption by brand marketers. In addition, according to the most recently available redemption data from NCH, the Internet coupon category outperformed other types of coupons with regards to share of redemptions to percent of coupons distributed,3 making it the most effective coupon method for marketers.